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We believe one of the best alternatives for conservative income investors is selecting stocks with low beta ratios. A stock has a low beta ratio if its returns change independently of changes in the market's returns.

Among 117 stocks that were recommended on Jim Cramer's Mad Money during the last 30 days, I have compiled 7 high-dividend stocks with low beta ratios. All stocks in my list have beta ratios lower than 0.7, market cap higher than $20 billion and dividend yields higher than 4%. I obtained 10- year income statement summaries from MSN Money and all other market data from Finviz.

Stock

Market Cap
(Billion $)

Sector

Dividend Yield

P/E

Beta

Profit Margin

CenturyLink (CTL)

24.0

Technology

7.5%

45.9

0.69

2.8%

Kinder Morgan Energy Partners (KMP)

29.6

Basic Materials

5.9%

18.4

0.37

14%

AT&T (T)

199.8

Technology

5.1%

46.2

0.55

3.7%

Enterprise Products Partners (EPD)

48.0

Basic Materials

4.9%

19.5

0.61

5.5%

Duke Energy (DUK)

45.8

Utilities

4.7%

19.4

0.33

10.4%

Verizon (VZ)

127.7

Technology

4.6%

41.8

0.51

2.7%

American Electric Power (AEP)

21.3

Utilities

4.3%

13.2

0.49

10.6%

(click on graphics below to enlarge)

CenturyLink is an integrated telecommunications company in the United States, and a leader in cloud infrastructure. While the company currently generates sufficient free cash flow to cover its dividend payouts at current levels, the company's debt has swollen, which could threaten the safety of the CenturyLink's dividend in the future. CTL recently traded at $38.56 and has a 7.5% dividend yield. CTL gained 16% during the past 12 months. The stock has a market cap of $24 billion, P/E ratio of 45.9 and Total Debt/Equity ratio of 1.06. CTL also had an EPS growth rate of -19% during the last five years. CenturyLink was a new addition to Jim Simons' equity portfolio in the second quarter.

Kinder Morgan Energy Partners is a pipeline transportation and energy storage company in North America. KMP recently traded at $85.36 and has a 5.9% dividend yield. KMP gained 16.4% during the past 12 months. The stock has a market cap of $29.6 billion, P/E ratio of 18.4 and Total Debt/Equity ratio of 1.64. KMP also had an EPS growth rate of -34.6% during the last five years. KMP management predicts organic growth of 2%-3% through increases in volume and prices, and believes the main force fueling growth will be achieved by expansion and acquisitions.

AT&T is a U.S. telecommunications giant. The company pays the highest dividend yield among the Dow 30 index constituents. It has paid uninterrupted dividends since 1893. While the company's EPS contracted at an average annual rate of nearly 19% per year over the past five years, its dividends increased at an average annual rate of 5.3% over the same period. Analysts forecast better days ahead, expecting the company's EPS to grow on average by 9.2% per year for the next five years. The company is riding the smartphone boom, as it plans to sell a record 25 million devices this year alone. With dividends and share buybacks, AT&T has returned almost $10 billion to shareholders in the first half of 2012.T recently traded at $34.63 and has a 5.1% dividend yield. T gained 23.9% during the past 12 months. The stock has a market cap of $199.8 billion, P/E ratio of 46.2 and Total Debt/Equity ratio of 0.62.

Enterprise Products Partners provides midstream energy services worldwide. EPD recently traded at $53.41 and has a 4.9% dividend yield. EPD gained 23.3% during the past 12 months. The stock has a market cap of $48 billion, P/E ratio of 19.5 and Total Debt/Equity ratio of 1.22. EPD also had an EPS growth rate of 14.4% during the last five years.

Duke Energy is an energy company operating in the United States and Latin America. DUK recently traded at $65.11 and has a 4.7% dividend yield. DUK gained 10.2% during the past 12 months. The stock has a market cap of $45.8 billion, P/E ratio of 19.4 and Total Debt/Equity ratio of 0.95. DUK also had an EPS growth rate of 7.1% during the last five years.

Verizon provides communications, information, and entertainment products and services worldwide. Over the past half decade, Verizon saw its EPS contract at an average rate of nearly 15% per year, while its dividends increased at an average rate of 4.3% per year. Analysts forecast that the company's EPS growth will average 9.2% per year for the next five years. Given that the company's free cash flow is expected to improve due to lower capital expenditures in the coming year, a higher-than-average dividend hike could be in the cards. VZ recently traded at $44.73 and has a 4.6% dividend yield. VZ gained 24.6% during the past 12 months. The stock has a market cap of $127.7 billion, P/E ratio of 41.8 and Total Debt/Equity ratio of 1.4.

American Electric Power is a public utility holding company. AEP recently traded at $43.95 and has a 4.3% dividend yield. AEP gained 16% during the past 12 months. The stock has a market cap of $21.3 billion, P/E ratio of 13.2 and Total Debt/Equity ratio of 1.23. AEP also had an EPS growth rate of 5.4% during the last five years.

Source: 7 High-Dividend Stable Stocks Favored By Jim Cramer

Additional disclosure: Dividendinvestr is a team of analysts. This article was written by Serkan Unal, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.